What is MEXC Futures Grid Trading?
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With the rapid growth of the cryptocurrency market, a wide range of automated trading strategies have emerged. Among them, grid trading has gained popularity among investors due to its simple structure, lack of reliance on market direction predictions, and high level of automation. This article will provide a comprehensive overview of what grid trading is and key considerations for using it effectively, helping users better understand and apply this strategy in a smart and informed way.
1. What Is Grid Trading?
Grid trading is a quantitative and automated trading strategy. It works by placing a series of evenly spaced buy and sell orders within a predefined price range, creating a "grid." As the price fluctuates within this range, the system automatically buys low and sells high, capturing profit from each small movement.
In simple terms, grid trading doesn't rely on predicting whether the market will rise or fall, it profits from price volatility itself. As long as the market moves, whether in a bull, bear, or sideways trend, there are opportunities to earn.
2. How Grid Trading Works
1) Define the Price Range: Choose an appropriate price range for the strategy.
2) Split the Grid: Divide the price range into several evenly spaced intervals, with each interval forming a "grid." For example, a $5,000 range divided into 10 grids results in $500 per grid.
3) Automated Order Placement: Buy and sell orders are placed at each grid level. For example, a buy order is automatically placed every time the price drops by $500, and a sell order is placed every time it rises by $500.
4) Repeat the Process: The system continuously buys low and sells high, capturing profit from each small price fluctuation.
Example:
BTC is currently priced at $97,000. A grid range is set between $95,000 and $100,000, divided into 10 grids:
- When the price drops to $96,500, the system automatically places a buy order;
- When the price rises back to $97,000, it automatically places a sell order, earning a $500 profit from the spread;
- As the price continues to fluctuate, the system repeats this buy-low, sell-high cycle.
3. What Types of Traders are Best Suited for Futures Grid Trading?
Futures grid trading is a flexible and automated quantitative strategy that suits a wide range of cryptocurrency traders. Unlike traditional trading methods that rely heavily on advanced technical analysis or complex fundamental assessments, Futures grid trading focuses more on systematic execution and risk diversification. This makes it relatively accessible and easier to get started, even for non-professional traders.
Below are several types of users who may benefit most from using Futures grid trading:
3.1 Short-Selling Traders
For traders who prefer short-selling and aim to profit during market downturns, Futures grid trading can be a highly practical tool.
Advantages: Traditional short selling involves high risk, but using a grid strategy allows for staggered entries and exits at different price levels, helping to spread risk during a sustained market downtrend.
Suitable For: Experienced traders who can tolerate higher risk and are skilled at timing the market, especially during trend reversals or periods of extreme volatility.
3.2 Leverage Users and Risk-Averse Traders
Leverage trading can amplify returns, but also increases risk. Futures grid trading offers a built-in risk buffer to help manage this balance.
Advantages: By setting a defined price range and placing dense long/short orders across it, traders can better control potential losses, even when using leverage.
Suitable For: Traders who want to use leverage to boost returns without taking on excessive risk, as well as those who prefer a more stable and systematic way to engage in Futures trading.
3.3 Passive and Time-Constrained Traders
Futures grid trading is highly automated, making it ideal for users who don't have the time to constantly monitor the market.
Advantages: With smart automation handling order placement and take-profit/stop-loss execution, traders can benefit from the strategy's performance without needing to monitor price movements throughout the day.
Suitable For: Busy professionals, students, or part-time investors who have limited time and prefer a more hands-off, automated trading approach.
3.4 Beginner Traders
For those new to the crypto market, Futures grid trading offers a beginner-friendly entry point.
Advantages: It requires no complex technical analysis or market forecasting. Most platforms offer automated modes that optimize parameters based on user preferences, lowering the barrier to entry and making automated trading strategies more accessible and safer for beginners.
Suitable For: New traders with limited experience who want to learn market behavior through hands-on practice while minimizing risk.
4. Advantages of Grid Trading on MEXC
- Low Entry Threshold: Start with as little as 10 USDT.
- High Leverage Options: Maximize capital efficiency and seize more trading opportunities.
- 24/7 Automated Execution: Once set up, the bot runs continuously, executing trades without emotional interference.
- Low Trading Costs: No fees for strategy setup or management, plus low Futures trading fees.
5. How to Use MEXC Futures Grid Trading?
Open and log in to the MEXC official website, then go to Futures and select Grid Trading.
5.1 Transfer Funds
By default, the grid trading bot uses funds transferred from the user's Spot Wallet. Before starting Futures grid trading, please ensure that there are sufficient available funds in your Spot Wallet.
5.2 Create the Bot
On the grid trading page, switch to the trading pair you want to use, then select the trading direction: Neutral, Long, or Short. This example uses the Neutral Grid as a demonstration. The Long and Short Grid setups follow a similar process.
- Neutral: No initial position is opened when the bot is created. It opens short positions when prices rise and long positions when prices fall. Best suited for sideways (range-bound) markets with no clear trend direction.
- Long: Only long positions are opened. As the price rises, long positions are closed; as the price falls, more long positions are opened. Ideal for gradually rising markets with upward fluctuations.
- Short: Only short positions are opened. As the price rises, more short positions are added; as the price falls, short positions are closed. Suitable for gradually declining markets with a step-like downward trend.
After entering the grid parameters, click Create Bot (Neutral), then confirm the bot details and click Confirm to complete the setup.
- Required Fields: Price range, number of grids, investment amount, and leverage.
- Optional Fields: Activation price, upper stop price, lower stop price.
Price Range: Set an appropriate price range. A range that is too wide may result in low execution frequency, while a range that is too narrow increases the risk of liquidation during one-sided market moves. Note: the upper limit must be higher than the lower limit.
Number of Grids: Choose a suitable number of grids. More grids mean higher execution frequency but lower profit per grid and higher capital requirements. Fewer grids mean higher profit per trade but lower frequency and lower capital demand.
Investment Amount: The more funds invested, the larger the position size per trade. Note that funds are transferred from the Spot Wallet. The Available balance shown refers to your Spot Wallet balance.
Leverage: Select a leverage level based on your risk tolerance. MEXC Futures grid trading currently supports 1x to 50x leverage.
Estimated Liquidation Price (Long): The projected liquidation price when all long positions within the grid strategy are filled.
Estimated Liquidation Price (Short): The projected liquidation price when all short positions within the grid strategy are filled.
If the estimated liquidation price at the time of creation falls within the grid range, the bot may get liquidated while running. In such cases, it is recommended to increase the investment amount, narrow the grid range, or reduce leverage.
Activation Price: The grid trading bot will only start when the market price reaches the specified activation price. If not set, the bot will start immediately upon creation. The activation price should fall within the defined price range.
Upper Stop Price: If the price rises to this level, the bot will automatically stop. This can be used as either a take-profit or stop-loss threshold. The upper stop price must be higher than the current market price.
Lower Stop Price: If the price drops to this level, the bot will automatically stop. This can also serve as a take-profit or stop-loss condition. The lower stop price must be lower than the current market price.
5.3 Activating the Bot
If no activation price is set in Advanced Settings during bot creation, the bot will activate immediately after creation.
If the activation action price is set in Advanced Settings during bot creation, the bot will not activate immediately after creation. It will only activate once the latest market price of the selected asset reaches the specified activation price.
A bot that has not been activated will not open any initial positions or place any orders.
A bot that has not been activated can be manually activated. Simply click the Activate button in the trading panel to launch the bot.
You can also click the Details button to view more information about the bot.
Note: Rules for Initial Position Creation When Activating Grid Bots:
If the user selects a Neutral grid strategy, the bot will not create any initial positions upon activation.
If the user selects a Long or Short grid strategy, the bot will create a corresponding number of initial positions based on the current price level within the grid. This ensures that the bot can close grid-based take-profit orders as the price fluctuates within the set range.
Example 1: The user selects a Long grid strategy for ETHUSDT with a price range of 2000–3000 USDT and a total of 10 grids.
When the bot is activated, the current ETHUSDT price is 2750 USDT. There are 3 grid price levels above 2750: 2800, 2900, and 3000, and the system will create 3 long positions accordingly.
As the price of ETHUSDT rises to 2800, 2900, and 3000 USDT respectively, the system will sequentially close these 3 long positions to realize profits.
Example 2: The user selects a Short grid strategy for ETHUSDT with a price range of 2000–3000 USDT and a total of 10 grids.
When the bot is activated, the current ETHUSDT price is 2650 USDT. There are 7 grid price levels below 2650 USDT: 2600, 2500, 2400, 2300, 2200, 2100, and 2000 USDT respectively, and the system will create 7 short positions accordingly.
As the price of ETHUSDT falls to these price levels (2600, 2500, 2400, 2300, 2200, 2100, and 2000 USDT), the system will sequentially close these 7 short positions to realize profits.
5.4 Add/Remove Funds
While the bot is running, you can add or remove funds at any time. Click the Details button in the trading panel to access the bot details page.
Click Add Funds or Withdraw Funds to adjust your capital.
Note: You cannot withdraw funds that would reduce the balance below the original investment amount.
5.5 Stopping the Bot
Similar with activation, to stop the bot, simply click the Stop button in the trading panel. Once the bot is stopped, the remaining funds will be returned to your Spot Wallet.
In addition, the bot will automatically stop in the following scenarios:
- Liquidation: If the position is liquidated, the bot will automatically stop.
- Delisting Stop: If the trading pair is delisted while the bot is running, the bot will be stopped.
- Stop Price Triggered: If you've set an upper or lower stop price in Advanced Settings, the bot will stop automatically once the market price reaches the specified stop level.
5.6 View Bot Assets
On the MEXC homepage, go to the top navigation bar, hover over Wallets, and select Trading Bot to view current bot asset data.
6. MEXC Futures Grid Trading Rules
1) Each user may run up to 10 grid trading bots simultaneously.
2) Position size is capped at the maximum allowed under Risk Limit Tier 1 for each trading pair.
3) Users restricted from Futures trading cannot create grid trading bots.
4) All grid bot orders are placed as limit orders.
5) If liquidation or tiered forced liquidation occurs, the bot will be forcibly stopped.
6) Grid bots operate in hedge mode and cross margin mode.
7) Insufficient funds for pending orders will not interrupt the bot, the system will automatically replenish orders periodically.
8) MEXC Futures Grid Trading currently supports USDT-M Futures.
9) The bot’s fee rate will match your main account’s fee rate. (Note: MX token fee deduction is not supported)
10) The bot supports arithmetic grids, meaning each grid has an equal price difference.
Disclaimer: This material does not constitute advice on investments, taxes, legal matters, finance, accounting, consulting, or any other related services, nor is it a recommendation to buy, sell, or hold any assets. MEXC Learn provides information for reference only and does not constitute investment advice. Please ensure you fully understand the risks involved and invest cautiously. All investment decisions and outcomes are the sole responsibility of the user.